Giving up on work with only two buy-to-lets

A lady initially contacted me to arrange a mortgage for a new home she was buying with her partner, having already rented out her previous home to move in with him. They intended to sell their current home to buy the new one, but it wasn’t selling. In the course of talking through numerous options, I learnt that the lady hated her job and wanted to pursue her dream of running artist workshops. I suggested that they rent out their current home ...

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Three freehold flats and one sitting tenant

Some clients were buying a large property in London that had been converted into three flats. Two of the flats needed complete renovation, and one had a long-term sitting tenant in occupation.

All three flats were on one freehold, and the overall situation meant that the property was unmortgageable without going for commercial finance.

We suggested that the clients separate the title into three long leasehold flats while carrying out the refurbishment, and put the freehold into a separate company. We then ...

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Emigrating to Oz

A client had built up a small portfolio of rental properties and was now emigrating to Australia. He didn’t want to manage the properties from abroad, and another factor was that his lender had offered to reduce the mortgages on several of the properties if they were redeemed.

He didn’t have time to arrange several sales to take advantage of the discounts, but his father was also a buy-to-let investor. We arranged for the properties to be sold from son to ...

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An extra £250,000 in equity and £44,000 in rent!

I helped investors secure 100% finance for two HMO properties they bought post-auction, by bridging against these two properties as well as using three unencumbered properties they already owned. All five bridging transactions were completed inside 28 days.

Within two weeks of completion, we refinanced one to Paragon and two to The Mortgage Works – still leaving the investors with two unencumbered properties.

In total, the bridging and subsequent refinancing cost £50,000 – but ended up with the investors benefiting to the ...

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A free flat!

My client agreed a purchase price of £483,000 for a house that was converted into three flats – all of which had short leases, but the lease extension was pre-agreed.

We agreed with the lenders that they would be happy for two of the flats to be instantly resold to buy-to-let investors - which they were, at their open market value of £250,000 each.

This left the investor owning the third £250,000 flat for free!

...

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Simple bridge, refurb and resale with only 10% deposit

My client found a property with a current value of £89,000 and negotiated a purchase price of £68,000.

We were able to arrange bridging finance for 90% of the purchase price at a rate of 1.15% per month, which meant that the client only needed to put up the deposit of £6,800.

After paying costs of £1,000 and spending £8,000 on refurbishment, the property was sold for £119,500 – making a net profit of £37,500.

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Unravelling a problem

A couple approached me because they wanted to buy a second buy-to-let property.

When I spoke to them, it turned out that they were living in their first buy-to-let and had rented out their former home. They didn't realise that this is a serious issue, but it is: it's a breach of the mortgage terms, and potentially invalidates any insurance too.

We unravelled this by switching their former home to a buy-to-let mortgage (releasing cash in the process), and switching their current ...

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